- Advanced Micro Devices (AMD) demonstrates exceptional momentum, trading at new all-time highs.
- Shares are up more than 220% over the past year.
- AMD stock maintains a 100% “Buy” rating from Barchart.
- Analyst sentiment is bullish but widely dispersed, with price targets ranging from $410 to $1,250 and consensus highlighting both upside and valuation concerns.
Today’s Featured Stock
Valued at $1.03 trillion, Advanced Micro Devices (AMD) offers the industry’s broadest portfolio of high-performance and adaptive processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software expertise to enable leadership computing platforms for cloud, edge, and end devices.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AMD checks those boxes. The Trend Seeker issued a new “Buy” signal on Sept. 11. The stock has gained 26.7% since that signal.
Barchart’s Technical Indicators for Advanced Micro Devices
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Advanced Micro Devices hit an all-time high of $658.52 on Oct. 6.
- Advanced Micro Devices has a Weighted Alpha of 205.89.
- AMD has a 100% “Buy” opinion from Barchart.
- The stock has gained 221.02% over the past 52 weeks.
- Advanced Micro Devices has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $655.15 with a 50-day moving average of $518.94.
- AMD had 12 highs and gained 36.93% in the last month.
- 60-month beta of 2.45.
- Relative Strength Index (RSI) is at 72.99.
- There’s a technical support level around $623.33.
Don’t Forget the Fundamentals
- $1.03 trillion market capitalization.
- 133.17x trailing price-earnings ratio.
- Revenue is expected to grow 47.08% this year and another 73.49% next year.
- Earnings are estimated to increase 81.75% this year and an additional 106.24% next year.
Analyst and Investor Sentiment on Advanced Micro Devices
- Wall Street analysts followed by Barchart give the stock 30 “Strong Buy,” 2 “Moderate Buy,” and 8 “Hold” opinions with price targets from $410 to $1,250.
- Value Line rates the stock “Highest” with a price targets from $785 to $1,175.
- Morningstar thinks the stock is fairly valued.
- CFRA’s MarketScope rates the stock as “Strong Buy” with a price target of $700.
- 619,010 investors are following the stock on Seeking Alpha, which acknowledges problems with its valuation.
- TipRanks’ analysts have a consensus of $650.
- Short interest is 2.56% of the float with 2.49 days to cover the float.
The Bottom Line on Advanced Micro Devices
I have already commented on the very wide range of opinions that Wall Street analysts have issued. However, the short sellers aren’t betting against the stock. The company shows extraordinary growth, excellent profitability, remarkable stock momentum, and a surge in analyst estimate upgrades. While its valuation is very expensive against sector peers, AMD’s strong fundamentals provide a compelling outlook. I’ll caution that with so many expecting so much from this stock, if and when it disappoints, it will be a bubble bursting event. Please, please have a stop loss in place if that happens.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.